Cash Flow Statement

Shows the total cash generated or consumed by the business during the year.

Within the annual accounts, along with the profit and loss and balance sheet, the cash flow statement is one of the three primary statements produced. It shows the total cash generated or consumed by the business during the year, split into its various components. The ability of a company to generate cash not only determines its underlying value, but also indicates whether it is solvent and can pay its debts when due. It is arguably just as important, if not more so, than the profit and loss statement.

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